Introduction

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Americans love to gamble. In 1995, almost 100 million
Americans legally wagered $400 billion and lost $39 billion to the
house.[1]&nbsp
"...Americans spent more on legal games of chance than on
films, books, amusement attractions and recorded music combined."
(from source dated February 1994)[2]&nbsp
Most of this action took place in major, well-known casinos in Nevada
and New Jersey, meaning private, individual pockets (like Donald
Trumpís or Steven Wynnís of Mirage Resorts) were filled.
Interestingly though, Native American Indians are becoming involved
with the glamour and glitz of casinos. Indian reservations across
the United States are opening their own casinos. In fact, Foxwoods
High Stakes Bingo & Casino of Ledyard, Connecticut, operated by the
Mashantucket Pequot tribe, is believed to be the most profitable
casino in the Western Hemisphere.[3]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
"Economic and social problems on Indian reservations in the United
States and in other countries are well documented."[4]&nbsp
Government entities, private research firms, and Indian groups have
detailed reports concerning poverty, alcohol and drug abuse, juvenile
delinquency, high crime rates, poor educational facilities, and many
other problems. Tribal governments push for change and greater
Indian self-determination to deal with their people's problems.
The argument is that tribes are sovereign entities and are therefore
responsible for their own affairs without interference from other
governments; and self-determination is a central component of
sovereignty.[5]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
"Any mention of Las Vegas conjures up images of glitzy casinos with
neon facades, a city built by gangsters to prey on the hopes of
reckless tourists. Itís an extraordinary place that is also
quintessentially American, a mecca for money-worshippers everywhere."[6]&nbsp
Up until 1988, gambling was only legal in the two states of Nevada
and New Jersey. Now gambling is only not legal in the two
states of Hawaii and Utah.[7]&nbsp
Traditionally, Nevada and New Jersey were the only states involved
in the American gambling industry, now they are feeling the pressure
of an additional 46 states entering the gambling arena.

The Indian Gaming Regulatory Act

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
In 1988, Congress passed the Indian Gaming Regulatory Act which
recognized the right of Indian tribes in the United States to
establish gambling and gaming facilities on their reservations as
long as the states in which they are located have some form of
legalized gambling. Two cases in the 1980's led up to this act:
Seminole Tribe of Florida v. Butterworth[8]
and California v. Cabazon Band of Mission Indians.[9]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
The Seminole case opened the doors to high-stakes bingo on
reservations all over the country. Florida tried to close the
Seminole tribe's high-stakes bingo parlor (opened in 1979), but
the court ruled that bingo fell under statutes classed as regulatory
rather than prohibitory.[10]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
The Cabazon case established that once a state has legalized any form
of gambling, Indian tribes within that state can offer the same game
on trust land without any state interference or restrictions. [Trust
land is reserved for and owned by Indians but held "in trust" by
federal government for the benefit of the Indian owners.]
This case brought up concerns about tribal regulation of Indian gaming
among many groups (i.e. Nevada and New Jersey where gambling is legal,
the National Association of Attorney Generals, the National Sheriffs'
Association).[11]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
In response to the concerns arising, Congress passed the Indian
Gaming Regulatory Act (IGRA).[12]&nbsp
This act went into effect on October 17, 1988:

The act is intended to 1) promote tribal economic development,
self-sufficiency, and strong tribal government; 2) provide
for a regulatory base to protect Indian gaming from organized
crime; and 3) establish the National Indian Gaming Commission.[13]

The act defines three classes of gambling and gaming:
Class I: Social games solely for prizes of minimal value or
traditional forms of Indian gaming engages in by individuals
as a part of, or in connection with, tribal ceremonies or
celebrations.
Class II: All forms of bingo, and other games similar to
bingo such as pull tabs, lotto, etc. and card games that are
explicitly authorized by state law, not including blackjack, baccarat, or chemin de fer.
Class III: All forms of gaming that are not Class I gaming
or Class II gaming.[14]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Class I gaming is within the jurisdiction of the tribe. Class II
gaming is allowed if the state within which the tribe is located
allows the gaming to anyone or under any conditions. A tribe is
allowed to license and regulate Class II gaming on Indian lands.
Class III gaming requires a tribe-state compact. The National Indian
Gaming Commission (NIGC) was established to approve the compacts and
prevent abuses.[15]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
The IGRA is having a major impact on intergovernmental relationships
among Indian tribes, states, and the federal government. First, the
revenues generated have helped spur economic development in Indian
country (which, too, supports the goals of tribal sovereignty and
economic self-sufficiency). Second, intergovernmental conflicts
have started between the tribes and the states over issues involving
state sovereignty, criminal jurisdiction, and gambling revenues.
Third, the IGRA ensures that the federal government maintains its
position of supremacy over tribes and tribe/state relations.[16]

Economically Speaking...

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Lack of economic independence: "It is widely known
that Indians living on reservations have the highest unemployment
rate in the nation[17] and
the lowest life expectancy rate.[18]Reservations are often compared to Third World nations."[19]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Structural hindrance to economic development on reservations:
trust land. Trust lands have given tribes a land base and some
cultural integrity, but they make it difficult to attract industry
and commercial enterprises to the reservation. Trust land can only
by leased by industries. Banks are usually unwilling to lend money
towards construction on reservations because they may not be able
to repossess the structure in a case of default.[20]

The Positive...

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
The economic benefits that have arisen from gambling
can best be seen in the labor market. Indian casinos have hired a
large number of both Indian and non-Indian peoples for both skilled
and unskilled jobs. Tribal unemployment and welfare rates have
dropped.[21]

According to the Midwest Hospitality Advisors report on Indian
gaming in Minnesota, the 13 Indian gaming operations in the State
of Minnesota currently employ approximately 5,700 people. Four
casinos have become the largest employer for their nearest city,
four others are among the top five employers for their communities,
and one other is in the top ten. Current employment includes
1,350 Native Americans, or approximately 24 percent of total
employees.[22]

The report also notes that between 1990 and 1992 the
percent of Indian AFDC (Aid to Families with Dependent Children)
recipients residing in counties with Indian casinos decreased by 3.2
percent, while recipients in non-casino counties increased by 14.6
percent.[23]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Indian unemployment rates of 30 percent and more are dropping to
almost nothing with the emergence of Indian casinos.[24]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Since the enactment of the IGRA, revenues from Indian
gaming operations have grown exponentially. Nationwide, total
revenues from Indian gaming are projected to top the $6 billion mark,
with total profits exceeding $1 billion, in 1995.[25]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
To continue with positive aspects, tribes use their profits for the
betterment of the reservation and its people. They are building
schools/colleges (there are currently 26 tribal colleges nationwide)
and community centers, setting up education trust
funds/scholarships, investing in alcohol and drug treatment
programs, financing new business enterprises (entrepreneurships),
and putting in water and sewer systems on the reservations.[26]

The Negative...

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
With the many positive affects, there also come
negative affects: gambling addiction. Is there a correlation between
increased pathological gambling and the growth in tribal casinos?
(Pathological gambling is defined as compulsive
gambling behavior where it is beyond the control of the individual.)
In Minnesota, the number of individuals calling the compulsive
gambling hotline increased dramatically over the last three years.
All of Minnesota's compulsive gambling treatment centers are full, and
the state is considering devoting more resources towards the problem.
Furthermore, preliminary evidence suggests that pathological
gambling is more prevalent among Indians than non-Indians, but much
more research is needed.[27]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Another negative aspect involves an argument researchers debate:
those who can least afford to gamble usually are the most affected.
"The poor spent a greater percentage of their income
on gambling than the wealthy, giving gambling the same effect on
incomes as regressive taxes--the poor are hit the hardest."[28]

For example, residents of Chelsea, Massachusetts, the
poorest city in the state, spend an average of $572 per year on the
state lottery, but from that they get back only $80 a person in local
aid, according to The Boston Globe. By contrast, the wealthier
residents of Lincoln spend only $26 a person on lottery tickets
annually, and they get more than that back in local aid.[29]

Opposition

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Opposition to gambling on the Indian reservations has arisen from
both Indians and non-Indians:

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Among Indians, bands have been
divided over the gambling issue. Elderly fear losing their
traditional values to corruption and organized crime.[30]&nbsp
"...the proliferation of gaming is a spiritual cancer eating away
at what is left of the soul of Native American communities."[31]&nbsp
Many of the younger generation see gambling as an opportunity to
advance their people; improve life in their community.
"...many are willing to face those stakes
[corruption and organized crime] for economic salvation. Casinos are
'one of the first real tools natives have gotten to become
self-sufficient,' said Phillip Pelletier, the economic development
officer of Fort William First National..."[32]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
In 1990, an incident arose among the Mohawks on the
Akwesasne reservation, which is located inside the New York state,
Quebec, and Ontario borders along the St. Lawrence River near Cornwall,
Ontario. The dispute involved six gambling casinos along Route 37, a
New York highway. The casinos were illegal under New York law, but
their operators insisted that they were on sovereign territory. The
contention between the pro- and anti-gambling Mohawks had been
holding each other off at gun point. The fighting came to a peak
when two lives were taken one night; a Mohawk Indian from each side
of the dispute.[33]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Donald Trump charged
that tribal gaming operations were riddled with crime at a Senate
hearing in Washington, D.C. in May of 1993.[34]&nbsp
Trump led some of the U.S. gaming syndicates towards
the workings of getting the 1988 Indian Gaming Regulatory Act repealed.[35]&nbsp
...[he] decided to sue the federal government to
get the special rights of the Indian tribes revoked."[36]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
In June of 1993, legislation was sought for an
amendment to the Indian Gaming Regulatory Act requiring Indian owned
casino to record and report all large transactions due to concerns
that tribal casinos could be used by organized crime to launder money
and evade taxes.[37]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Some state cases of opposition include:
KANSAS - the Kansas attorney general successfully sued the governor in
blocking legal recognition of a gaming compact that had been reached with
the stateís Kickapoo tribe; OKLAHOMA - a court decision blocked
implementation of federally approved Indian casino compacts as unlawful
under the stateís constitution; WASHINGTON - a federal judge ruled
against the Colville tribe in its attempt to compel the governor to
negotiate a gambling compact with the tribe, finding such negotiations
constitutionally flawed.[38]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Other state governments have avoided signing
federally required gambling compacts with tribes by invoking the 10th
and 11th Amendments. (The 10th asserts a stateís sovereignty and its
freedom from being told what to do by Congress. The 11th protects
states from being sued.)[39]&nbsp
Other courts have allowed Indians to offer games that are not
permitted anywhere else in the state. For example, in California, a
federal judge allowed tribal casinos to operate an array of games the
state objects of, including video poker and Keno.[40]

Competition

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Indian gaming facilities have entered a market where, at this time,
they have little or no competition (from other Indian facilities).
"While only 90 of the nation's 557 tribes are
involved in gaming, according to the national Indian Gaming
Association, their operations account for about 200 gaming sites in
19 states,"[41]&nbsp
As more tribes enter the market, the smaller the share for each.
However, Indian competition is not the real threat.
Lawmakers are experiencing pressures to open
gambling to all. If casinos were to open within major population
centers, gamblers would have no reason to travel to Indian
reservations. Tribes could be left with empty casinos and high
unemployment rates, again.[42]&nbsp
Where is the market saturation point? "The laws of
supply-and-demand govern profits and losses and ultimately economic
survival."[43]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
"The national prominence of
tribal casinos has also given Indian leaders potential political
clout, especially with the federal government."[44]&nbsp
'"Tribal governments realize that a casino is not an
end in itself. It is a means to achieve what no state or federal
economic development program has been able to achieve for Indian
people in 200 years--the return of self-respect and economic
self-sufficiency," says JoAnn Jones, tribal chair of the Wisconsin
Winnebago Nation.'[45]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Native American Indian
reservations are not international (although they are often compared
to Third World nations [46]),
but they are not governed by the same laws as the states either.
States have no power to tax, regulate, or police casinos run by
Indian tribes. Indian gambling revenues are exempt from federal,
state, and local taxes! Of course this does not leave state
officials or other casino competitors with a good taste in their
mouths.[47]&nbsp
(New Jersey imposes an eight percent tax on casino revenues
which funds senior citizen and handicapped programs.[48])

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Donald Trump has also attempted to interrupt the growth of Indian
reservation casinos. On April 30, 1993, he filed a civil suit in
U.S. District Court in Newark, New Jersey against U.S. Secretary of
the Interior, Bruce Babbitt, and Tony Hope, chairman of the National
Indian Gaming Commission, claiming that the Indian Gaming Regulatory
Act is unconstitutional and gives Indians preferential treatment and
an unfair advantage in acquiring licenses for setting up legal
casinos on their land.[49][50]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Coincidentally, Trumpís three Atlantic City casinos, Trump Castle,
Trump Plaza, and Trump Taj Mahal, are feeling the heat from the
Mashantucket Pequotís Foxwoods casino in Connecticut and are fearing
the possibility of the Ramapough Indians of Northern New Jersey
opening a gambling operation near Atlantic City. "Unabashed motor
mouth Donald Trump lived up to his reputation on Oct. 5 when he told
a congressional hearing that organized crime is rampant on Indian
reservations. Trump went on to predict that if the trend toward
gaming on Native American land continues, ëthis will be the biggest
crime problem in this countryís history.í"[51]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
From the Nightly Business Report transcript of
December 20, 1993, announcer Mikkelson said, "...others say the fate
of Atlantic City still rests in the hands of the state,... And
competition is getting closer. Indian run Foxwood Casino in
Connecticut is luring high rollers away."[52]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Guest Hector Mon, Executive Vice President of
Harrahís Casino, responded with, "We do recognize that weíre no
longer a regional monopoly and we will have to work harder to keep
our customers in the future."[53]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
"Atlantic City Mayor James Whelan said the region
recognized that the proliferation of gaming was a 'serious' threat
and is taking 'significant' steps to stay competitive. ëWe must
change our image from that of a convenient location to gamble back to
the destination resort that we once were,í he said," including
improvement to the cityís infrastructure, transportation system and
attractions.[54]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Las Vegas Mayor Jan Laverty
Jones said officials in that city have long predicted gaming would
expand nationally and have taken appropriate measures. "We have been
looking to diversify our economic base so as not to be so dependent
on gaming. Weíve been bringing in other businesses and developing
the mega-resorts to draw the family market. Though gaming is
certainly central here, it is not the only entertainment available,
and I think weíve been very successful at letting people know that."[55]

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
"...opponents say
government-sanctioned Indian casinos like Foxwoods will pull business
away from privately run casinos in Atlantic City, Las Vegas and
elsewhere."[56]&nbsp Other
enterprises have complained that Indian gambling has ruined
their business. In Wisconsin, Indian reservation
gambling began in 1991. By July of 1993 there were 17 Indian casinos
in the state. Also in the area, a $17 million dog-racing track had
opened in 1990. During 1991 and 1992, it lost $6 million with high
probability of being closed in the summer of 1993, taking jobs and
tax revenues with it.[57]

Conclusion

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Since the settlement of America, Native Americans
have received the short end of the stick. Settlers continuously
encroached upon Native American land, completely disregarding the fact
the Indians were there first. After years of displacing the Indians
and fighting with them, the government allotted reservations for the
Indians to call their own, how generous!

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
In 1988, the Indian Gaming Regulatory Act gave the
troubled Indians on the reservations the opportunity to better
themselves through their own efforts. The fact that many tribes so
far have been successful, and many more are desiring to start their
own casinos to grab a piece of the industry is what kills the
monopolistic-desirous moguls like Trump. They should not be taking
away the window of opportunity that was opened only 8 years ago for
the Indians. People like Trump fear loosing their billions of dollars
and control of their mostly secluded industry that had little
competition before.

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Competition is an inevitable force. It is an entity that appears
where success is experienced. Trump-ites should pursue the path of innovation
and refinement as a means to prevent downfall. For example, Las Vegas' attempt
at family entertainment (however, I'm not sure that family element is an ideal
approach - is the mixture of amusement park with gambling, smoking, drinking, and
prostitution the kind of environment you would like to take your children to for
vacation?).

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp
Tribes able to make large profits from gambling
need to secure the welfare of the future through reinvestment within
the tribe's people because market saturation might be reached, be it
additional Indian casinos and/or lawmakers legalizing gambling to all.
They should take advantage of what they have now, because it could be
gone tomorrow!